MercadoLibre's fundamentals have grown significantly over five years while its shares have made relatively little progress. It is still consolidating in a large base, with improving relative strength and accumulation that could precede a Stage 2 advance. x.com 

Latin American equities' sell-off looks overdone as long as the underlying businesses keep growing and fundamentals remain intact. Under that condition, the drop is market noise, and MercadoLibre and Nu Holdings could offer attractive opportunities amid the panic. x.com 

MercadoLibre's collapsing margins and earnings make its 45-times-earnings valuation look like a value trap. It faces intense competition, and less of its revenue reaches the bottom line; falling earnings make the stock more expensive even as its price falls. Nu Holdings trades at 17 times earnings and Inter & Co at 7 times, with both growing revenue and earnings robustly. Selling MercadoLibre to build positions in companies with better fundamentals is under consideration. x.com  x.com  x.com  x.com 

MercadoLibre's growth under Lula makes today's selloff look absurd. On a TTM basis since Q1 2023, revenue is up 206% and EPS 200%; having done so well during his term, it should be fine going forward. x.com  x.com 

MercadoLibre's commerce and fintech revenue growth underpins the view that its shares are undervalued at current prices. The attached chart shows quarterly commerce services revenue reaching $4.3 billion and fintech revenue $4.4 billion in June 2026, up from $769 million and $467 million in March 2021. x.com 

Political uncertainty and Amazon competition have held MercadoLibre's stock back despite a humming business. The company is great and the stock deserves to turn, but at roughly 45 times earnings and only about 12% gained over five years, it has remained a difficult stock to own. x.com  x.com  x.com  x.com 

Brazil's political developments have driven a selloff that makes MercadoLibre a dip opportunity. MELI is down 11% amid the market's reaction. x.com 

MercadoLibre's business results should begin inflecting as credit portfolio growth slows now that the book has reached scale. An excellent outcome in Brazil improves the economic backdrop, and the stock sat at the technical bottom of its consolidation wedge. The economic backdrop, forward results and technicals all look very bullish. x.com  x.com 

South American political unpredictability keeps investors from rewarding MercadoLibre's excellent fundamentals. Today's selloff illustrates that risk, despite the strength of the business. x.com  x.com 

Today's fundamentals and long growth runways make Nu Holdings and MercadoLibre among the market's most compelling and mispriced opportunities for patient capital. Their short-term outlook shifts mostly with FX volatility and fiscal and monetary policy uncertainty. x.com